The Cimic (ASX: CIM) share price is sliding this morning, down 2.4% after the construction company announced another 2 contract wins.
The post The Cimic (ASX:CIM) share price slides despite new contracts appeared first on The Motley Fool Australia. –
We take a look at the company’s latest contract announcement below.
What new contracts did Cimic announce today?
The Cimic share price is sliding today, despite the company reporting its second major contract win in as many days.
This morning, the ASX 200 construction, mining, and services company revealed that its minerals processing company, Sedgman, and construction company CPB Contractors were awarded 2 new contracts in Queensland. The company expects the combined contracts to generate $100 million in revenue.
QCoal awarded a contract to Sedgman to build a “tailings dewatering facility” at the Byerwen mine.
Meanwhile, the Queensland government awarded Broad Construction (a wholly-owned subsidiary of Cimic’s CPB Contractors) a contract to build additional educational facilities at the Yarrabilba State Secondary College.
What did management say?
Commenting on the new contract awards, Cimic CEO Juan Santamaria said:
CIMIC Group’s companies have a strong history of deliveringconsistent outcomes in Queensland.
We are pleased to continue our long-standing relationships with QCoal to deliver safe and efficient solutions for the industry; and with the Queensland Department of Education to deliver high-quality assets of lasting value that will benefit the local community.
Sedgman managing director Grant Fraser added:
We are pleased to continue working with QCoal with a key focus on reducing impacts and undertaking environmentally responsible practices. The tailings dewatering contract at Byerwen is a great opportunity to achieve joint goals in ESG, an important focus for the industry.
Cimic advised that it would complete both projects in 2022.
Today’s release follows a separate contract announcement yesterday when the company reported the Queensland government had awarded CPB Contractors the construct-only contract to upgrade the Bruce Highway. That contract is expected to generate $289 million, with work forecast to start this year.
Cimic share price snapshot
Over the past 12 months, Cimic shares are up 40%, right in line with the 40% gain on the ASX 200.
Year-to-date, the Cimic share price is down 27%, currently trading at $18.21 per share.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.